Mention the name for economic theory that the support of business that allows them to flourish will eventually benefit middle- and lower-income people in the form of increased economic activity and reduced unemployment?
Correct answer: B. Trickle down
- A. End benefit
- B. Trickle down
- C. Free market
- D. Capitalism
Explanation
Trickle-down theory claims that supporting businesses and higher-income investors will increase investment and activity, eventually benefiting lower-income groups through jobs and growth. Capitalism is a broader economic system, not this specific claim.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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